Fischer urges continuity with IMF-prescribed programs<\/p>\n
JAKARTA (JP): The International Monetary Fund's first deputy
\nmanaging director, Stanley Fischer, said on Friday he was
\nheartened by the outcome of Indonesia's June 7 general election,
\nwhich passed peacefully, and with the improving economic picture.<\/p>\n
However, he emphasized that the new government would need to
\ncontinue the IMF-prescribed economic reform programs to ensure
\ninternational support and a sustainable economic recovery.<\/p>\n
\"If the next government follows the policies that we've agreed
\non then we'll continue to support Indonesia,\" he said after
\nmeeting with President B.J. Habibie a few hours after his arrival<\/p>\n
Fischer, here on a two-day visit, is to meet political leaders
\non Saturday, including popular opposition leader Megawati
\nSoekarnoputri, whose PDI Perjuangan party is the front-runner in
\nthe elections.<\/p>\n
Fischer is accompanied by IMF Asia-Pacific director Hubert
\nNeiss, who arrived on Thursday.<\/p>\n
Fischer said his visit was to reiterate the importance of
\ncontinuing the economic reform programs, particularly the
\nrestructuring of the financial and corporate sector, as well as
\nthe recovery of massive problem loans owed to domestic banks.<\/p>\n
He said Indonesia needed to work harder to recover the loans
\nto support the costly bank restructuring program.<\/p>\n
The IMF has been supporting a multi-billion dollar bailout for
\nthe crisis-hit economy.<\/p>\n
Fischer said he was happy with the nonviolent polling process,
\nand that he expected a smooth political transition.<\/p>\n
He said developments on the economic front were encouraging,
\npointing out the strengthening of the rupiah and the stock
\nmarket.<\/p>\n
\"The economy has begun to grow in the first quarter and
\nprospects for the (economic) recovery in the second half of the
\nyear are good.\"<\/p>\n
He predicted the rupiah would continue to strengthen against
\nthe U.S. dollar, despite recent strong rallies.<\/p>\n
The rupiah closed slightly lower in quiet trading on Friday at
\nRp 7,295 to the dollar, compared to Rp 7,280 on the previous day.<\/p>\n
\"There's more room for the rupiah to appreciate,\" he said.<\/p>\n
Fischer called on investors to return to the country amid the
\nimproving political and economic conditions.<\/p>\n
\"It's time for investors to come back,\" he said upon arrival
\nat Soekarno-Hatta International Airport.<\/p>\n
Fischer said a remaining uncertainty was the country's
\npresidential election in November.<\/p>\n
Indonesia held its first free general election on June 7 after
\nmore than 30 years under the authoritarian rule of former
\npresident Soeharto.<\/p>\n
The IMF has been concerned with statements made by Megawati's
\ntop economic adviser, Kwik Kian Gie, who has said the country's
\neconomy would be better off if the rupiah was pegged at a fixed
\nrate to the U.S. dollar. But Kwik has also said PDI Perjuangan
\nwould not implement such plans without IMF approval.<\/p>\n
\"The current exchange rate arrangement is working very well,
\nit has shown resiliency, and the rupiah is strengthening. That is
\ngood for the economy,\" Fischer said.(rei\/prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fischer-urges-continuity-with-imf-prescribed-programs-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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